In the quarter lumber operations generated operating earnings of $32 million (3Q –$57 million) and EBITDA of $83 million (3Q - $83 million). Restructuring charges of $24 million are included in operating earnings in the quarter, representing costs associated with the planned closure of our Houston, B.C. sawmill. The benefit provided by higher lumber prices and a weaker Canadian dollar was offset by the effect of reduced shipments. Lumber markets weakened late in the quarter as severe weather reduced demand and also affected transportation. Despite prices strengthening for certain lumber grades and dimensions, prices for wide-width SYP lumber declined during the quarter which adversely affected U.S. lumber results.
The panel segment, which includes plywood, LVL and MDF, generated operating earnings in the 4Q of $2 million (3Q - $6 million) and EBITDA of $6 million (3Q - $9 million), mostly reflecting reduced plywood shipments due to a seasonal slowdown in the Canadian building industry and weather-related reduced railcar deliveries.
Pulp and paper operations generated operating earnings in the quarter of $13 million (3Q - $29 million) and EBITDA of $24 million (3Q - $40 million). Improved NBSK pricing and a weaker Canadian dollar were offset by operational difficulties at NBSK mills.
“We consider that 2013 represents a year of remarkable recovery,” said Ted Seraphim, President and CEO. “We achieved our highest earnings since 2006 reflecting a continuing improvement in the U.S. housing market after a prolonged downturn. We are early in the recovery and as such, we expect some volatility, but the overall trend remains positive. We are also experiencing some of the benefits from our ongoing major capital investment program.”
West Fraser is an integrated wood products company producing lumber, wood chips, LVL, MDF, plywood, pulp and newsprint. The Company has operations in western Canada and the southern United States.